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The move comes ahead of the festive season, when demand for food delivery is expected to surge.
Swiggy Platform Fee Hike.
A day after Zomato, its rival Swiggy on Wednesday also hiked the platform fee for its food delivery business by Re 1 to Rs 15 in certain regions where it is seeing high demand. Earlier, the fee had stood at Rs 14.
On August 14 also, the company had increased the fee from Rs 12 to Rs 14.
The move comes ahead of the festive season, when demand for food delivery is expected to surge. It is possible that Swiggy cuts the platform fee back to Rs 12 during non-festive days later.
The platform fee is a flat fee that food delivery companies Swiggy and Zomato charge from customers on orders.
Swiggy was the first to start charging platform fees. Zomato followed the suit and introduced the platform fee in 2023, as a Rs 2 per order flat levy. While the charges are small compared to the average order value of Rs 500-700, they help in improving the company’s overall margins.
Zomato Hikes Platform Fees To Rs 12
Eternal-owned food delivery platform Zomato on Tuesday increased its platform fee on orders to Rs 12 from the earlier Rs 10.
Heavy Investments in Quick Commerce
Both Zomato and Swiggy continue to invest aggressively in their quick commerce arms. In the April-June quarter, Zomato’s parent company reported a 90% year-on-year (YoY) decline in consolidated net profit, falling to Rs 25 crore from Rs 253 crore a year earlier, even as revenue surged 70%.
Swiggy, on the other hand, saw its losses double to Rs 1,197 crore during the same period, largely due to rising investments in its Instamart business. Its operating revenue rose 54% to Rs 4,961 crore.
New Competition from Rapido’s Ownly
The food delivery duopoly is also facing fresh competition from Rapido, which has launched its own service, Ownly.
The platform is currently operational in Bengaluru’s Koramangala, HSR, and BTM Layout areas. Unlike Zomato and Swiggy, which charge restaurants commissions ranging from 16-30%, Ownly is expected to levy a lower commission rate between 8-15%.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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